Pakistan’s current account deficit in the first three months of 2014-15 remained $1.33 billion, according to data released by the State Bank of Pakistan (SBP) yesterday.
The current account deficit widened by $62 million in July-September over the same three-month period of the preceding fiscal year when it was $1.26 billion.
With the difference of exports and imports being the biggest determinant of the current account balance, a deficit or surplus reflects whether a country is a net borrower or lender with respect to the rest of the world.
As a percentage of the gross domestic product (GDP), the current account deficit stood at 1.8% in July-September as opposed to 2.1% in the same period of the last fiscal year.
In September alone, the current account balance clocked up in the positive territory with a surplus of $3 million. In contrast, it was negative in August with a deficit of $560 million.
